Oregon Revised Statutes

Or. Rev. Stat. § 316.127 (2026)

Income of nonresident from Oregon sources

✓ current as of May 2026
Find cases: SyfertCases citing this section ORSoregonlegislature.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

      316.127 Income of nonresident from Oregon sources. (1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following:

      (a) The net amount of items of income, gain, loss and deduction entering into the nonresident’s federal adjusted gross income that are derived from or connected with sources in this state including (A) any distributive share of partnership income and deductions and (B) any share of estate or trust income and deductions; and

      (b) The portion of the modifications, additions or subtractions to federal taxable income provided in this chapter and other laws of this state that relate to adjusted gross income derived from sources in this state for personal income tax purposes, including any modifications attributable to the nonresident as a partner.

      (2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to:

      (a) The ownership or disposition of any interest in real or tangible personal property in this state;

      (b) A business, trade, profession or occupation carried on in this state; and

      (c) A taxable lottery prize awarded by the Oregon State Lottery, including a taxable lottery prize awarded by a multistate lottery association of which the Oregon State Lottery is a member if the ticket upon which the prize is awarded was sold in this state.

      (3) Income from intangible personal property, including annuities, dividends, interest and gains from the disposition of intangible personal property, constitutes income derived from sources within this state only to the extent that such income is from property employed in a business, trade, profession or occupation carried on in this state.

      (4) Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income, gains, losses and deductions derived from or connected with sources in this state, under regulations to be prescribed by the Department of Revenue, but otherwise shall be determined in the same manner as the corresponding federal deductions.

      (5) Notwithstanding subsection (3) of this section:

      (a) The income of an S corporation for federal income tax purposes derived from or connected with sources in this state constitutes income derived from sources within this state for a nonresident individual who is a shareholder of the S corporation; and

      (b) A net operating loss of an S corporation derived from or connected with sources in this state constitutes a loss or deduction connected with sources in this state for a nonresident individual who is a shareholder of the S corporation.

      (6) If a business, trade, profession or occupation is carried on partly within and partly without this state, the determination of net income derived from or connected with sources within this state shall be made by apportionment and allocation under ORS 314.605 to 314.675.

      (7) Compensation paid by the United States for service in the Armed Forces of the United States performed by a nonresident does not constitute income derived from sources within this state.

      (8) Compensation paid to a nonresident for services performed by the nonresident at a hydroelectric facility does not constitute income derived from sources within this state if the hydroelectric facility:

      (a) Is owned by the United States;

      (b) Is located on the Columbia River; and

      (c) Contains portions located within both this state and another state.

      (9)(a) Retirement income received by a nonresident does not constitute income derived from sources within this state unless the individual is domiciled in this state.

      (b) As used in this section, “retirement income” means retirement income as that term is defined in 4 U.S.C. 114, as amended and in effect for the tax period.

      (10) Compensation for the performance of duties described in this subsection that is paid to a nonresident does not constitute income derived from sources within this state if the individual:

      (a) Is engaged on a vessel to perform assigned duties in more than one state as a pilot licensed under 46 U.S.C. 7101 or licensed or authorized under the laws of a state; or

      (b) Performs regularly assigned duties while engaged as a master, officer or member of a crew on a vessel operating in the navigable waters of more than one state. [1969 c.493 §23; 1971 c.672 §2; 1973 c.269 §2; 1975 c.705 §4; 1983 c.684 §15a; 1989 c.625 §9; 1997 c.654 §6; 1997 c.839 §10; 1999 c.143 §4; 1999 c.556 §1; 1999 c.580 §7; 2001 c.77 §§1,4; 2001 c.114 §37; 2003 c.77 §24; 2014 c.114 §13]

Notes of Decisions
Cited in 49 cases (5 in the last 5 years), 1971–2026 · leading case: Moro v. State of Oregon, 351 P.3d 1 (Or. 2015).
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). · cites it 4× “Both 4 USC section 114 and ORS 316.127(9) apply to retirement income received after December 31, 1995.”
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008). · cites it 16× “The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005). · cites it 6× “ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018). · cites it 8× “124 and ORS 316.127. The relevant statutes for shareholders in 33 The conclusion the court draws as to UDITPA being a source of authority for combined reporting also answers the assertion by the department that some- how ORS 314.”
Etter v. Dep't of Revenue, 377 P.3d 561 (Or. 2016). · cites it 2× “” 4 ORS 316.127 provides, in part: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: [[Image here]] “(b) A business, trade, profession or occupation carried on in this state [.”
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988). · cites it 6× “3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
Kulick v. Dep't of Revenue, 624 P.2d 93 (Or. 1981). · cites it 2× “” 3 ORS 316.127: "(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: "(3) Income from intangible personal property, including annuities, dividends, interest and gains from the disposition of intangible personal…”
Julian v. Dep't of Revenue, 17 Or. Tax 384 (Or. T.C. 2004). · cites it 2× “As a nonresident earning income in Oregon, Julian was subject to Oregon income tax on income attributable to his work in Oregon pursuant to ORS 316.127. 2 Taxpayers claimed exemption pursuant to the Amtrak Act and the Department of Revenue (the department) subsequently issued a…”
Ballard v. Dep't of Revenue, 13 Or. Tax 201 (Or. T.C. 1994). · cites it 4× “ANALYSIS ORS 316.127 includes in a nonresident’s income items of income “derived from or connected with sources in this state.”
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021). “, 19 OTR 524, 536-37 (2008) (in interpreting “business, trade, profession or occupation” for purposes of apportioning nonresident’s income from intangibles under ORS 316.127(3), court not required to follow federal meaning of “trade or business” as used to determine “taxable…”
Jonsson v. Dep't of Revenue, 4 Or. Tax 376 (Or. T.C. 1971). · cites it 6× “117: “The taxable income of a nonresident individual is that part of his federal taxable income attributable to sources within this state determined by reference to ORS 316.127.” ORS 316.127: “ (1) The adjusted gross income of a nonresident derived from sources within this state…”
Zemke v. Dep't of Revenue, 17 Or. Tax 18 (Or. T.C. 2003). · cites it 3× “037(3), and ORS 316.127. 2 As a corollary to the rules on taxation of income of nonresidents, ORS 316.”
— Or. Rev. Stat. § 316.127(1) — 5 cases
Pratt & Larsen Tile v. Dep't of Revenue, 13 Or. Tax 270 (Or. T.C. 1995).
Ballard v. Dept. of Rev., 21 Or. Tax 211 (Or. T.C. 2013).
Fernandez v. Dept. of Rev. (Or. T.C. 2020).
Crewse v. Dept. of Rev. (Or. T.C. 2024).
Mendoza v. Dept. of Rev. (Or. T.C. 2016).
— Or. Rev. Stat. § 316.127(1)(a) — 6 cases
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988). “3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
Jones, Grey & Bayley, P.S. v. Dep't of Revenue, 16 Or. Tax 300 (Or. T.C. 2000).
Ballard v. Dep't of Revenue (Or. T.C. 2012).
Roberts v. Dep't of Revenue (Or. T.C. 2012).
Veenendaal v. Dept. of Rev. (Or. T.C. 2015).
— Or. Rev. Stat. § 316.127(1)(b) — 1 case
Woolum v. Dept. of Rev. (Or. T.C. 2026).
— Or. Rev. Stat. § 316.127(10) — 3 cases
Niemela v. Dept. of Rev. (Or. T.C. 2019).
Crewse v. Dept. of Rev. (Or. T.C. 2024).
Mendoza v. Dept. of Rev. (Or. T.C. 2016).
— Or. Rev. Stat. § 316.127(10)(b) — 1 case
Mendoza v. Dept. of Rev. (Or. T.C. 2016).
— Or. Rev. Stat. § 316.127(2) — 3 cases
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988). “3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
Ballard v. Dep't of Revenue, 13 Or. Tax 201 (Or. T.C. 1994). “ANALYSIS ORS 316.127 includes in a nonresident’s income items of income “derived from or connected with sources in this state.”
Jones v. Dep't of Revenue, 5 Or. Tax 698 (Or. T.C. 1974).
— Or. Rev. Stat. § 316.127(2)(a) — 2 cases
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008). “The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
Lydiard v. Dep't of Revenue, 14 Or. Tax 152 (Or. T.C. 1997).
— Or. Rev. Stat. § 316.127(2)(b) — 5 cases
Etter v. Dep't of Revenue, 377 P.3d 561 (Or. 2016). “” 4 ORS 316.127 provides, in part: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: [[Image here]] “(b) A business, trade, profession or occupation carried on in this state [.”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005). “ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008). “The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
Averett v. Dept. of Rev. (Or. T.C. 2024).
Ballard v. Dep't of Revenue (Or. T.C. 2012).
— Or. Rev. Stat. § 316.127(3) — 9 cases
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008). “The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021). “, 19 OTR 524, 536-37 (2008) (in interpreting “business, trade, profession or occupation” for purposes of apportioning nonresident’s income from intangibles under ORS 316.127(3), court not required to follow federal meaning of “trade or business” as used to determine “taxable…”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005). “ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
Criv Investments, Inc. v. Dep't of Revenue, 14 Or. Tax 181 (Or. T.C. 1997).
Ballard v. Dep't of Revenue, 13 Or. Tax 201 (Or. T.C. 1994). “ANALYSIS ORS 316.127 includes in a nonresident’s income items of income “derived from or connected with sources in this state.”
— Or. Rev. Stat. § 316.127(4) — 1 case
Lydiard v. Dep't of Revenue, 14 Or. Tax 152 (Or. T.C. 1997).
— Or. Rev. Stat. § 316.127(5) — 4 cases
Kulick v. Dep't of Revenue, 624 P.2d 93 (Or. 1981). “” 3 ORS 316.127: "(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: "(3) Income from intangible personal property, including annuities, dividends, interest and gains from the disposition of intangible personal…”
O'Neil v. Dep't of Revenue, 6 Or. Tax 467 (Or. T.C. 1976).
Kulick v. Dep't of Revenue, 7 Or. Tax 471 (Or. T.C. 1978).
— Or. Rev. Stat. § 316.127(6) — 5 cases
Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018). “124 and ORS 316.127. The relevant statutes for shareholders in 33 The conclusion the court draws as to UDITPA being a source of authority for combined reporting also answers the assertion by the department that some- how ORS 314.”
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008). “The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
McBroom v. Dep't of Revenue, 14 Or. Tax 239 (Or. T.C. 1997).
Garcia v. Dep't of Revenue (Or. T.C. 2012).
— Or. Rev. Stat. § 316.127(7) — 1 case
Averett v. Dept. of Rev. (Or. T.C. 2024).
— Or. Rev. Stat. § 316.127(8) — 2 cases
Jonsson v. Dep't of Revenue, 4 Or. Tax 537 (Or. T.C. 1971).
Lee v. Dep't of Revenue, 16 Or. Tax 215 (Or. T.C. 2000).
— Or. Rev. Stat. § 316.127(8)(a) — 1 case
Lee v. Dep't of Revenue, 16 Or. Tax 215 (Or. T.C. 2000).
— Or. Rev. Stat. § 316.127(9) — 3 cases
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). “Both 4 USC section 114 and ORS 316.127(9) apply to retirement income received after December 31, 1995.”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005). “ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
— Or. Rev. Stat. § 316.127(9)(a) — 2 cases
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015). “Both 4 USC section 114 and ORS 316.127(9) apply to retirement income received after December 31, 1995.”
— Or. Rev. Stat. § 316.127(l)(a) — 1 case
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988). “3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.